Resource stocks led declines on the Toronto stock market Friday as investors ended third-quarter trading pessimistic about the pace of economic recovery and the outcome of the European debt crisis.
The S&P/TSX composite index fell 62.48 points to conclude the day, week, month and quarter at 11,623.84
The Canadian dollar faded 1.55 cents to 95.42 cents U.S.
Negative sentiment over recovery prospects, and doubt that Greece can avoid a default, have made for a tough July-September quarter with the TSX down about 12.1%.
Investors worry that the global economy is slipping into recession, which would lower demand for oil, copper and other commodities which Canada produces. That would weaken exports and profits and further depress share prices on the resource heavy TSX.
Those worries were underscored Friday by Scotiabank’s Commodity Price Index, which fell by 3.3% month over month in August.
Suncor Energy lost $1.10 to $26.61 and Canadian Natural Resources was down 91 cents to $30.61.
The base metals sector fell as copper prices continued to retreat, down another 11 cents to $3.13 U.S. a pound after closing Thursday at its lowest level since August 2010. Copper is widely considered a proxy for the overall economy but sliding demand prospects have slashed prices by 24% during the third quarter.
Teck Resources declined 15 cents to $30.57. Teck said Friday that it had reached a tentative agreement with union members at its Highland Valley Copper Operations in B.C., which is the largest copper mine in Canada.
First Quantum Minerals lost 52 cents to $13.88.
Railroad stocks fell alongside mining stocks as Canadian National Railways lost $1.18 to $69.80 and Canadian Pacific Railway fell $1.32 to $50.40.
Financials also weighed on the TSX with Royal Bank down 35 cents to $48.06 and Manulife Financial fell 36 cents to $11.94.
Barrick Gold Corp. rose $1.10 to $49.11 and Goldcorp Inc. climbed $1.81 to $48.07.
In corporate news, Montreal-based copper producer Anvil Mining Ltd. on Thursday received a $1.3-billion friendly takeover offer from Minmetals Resources, part of a vast China-based mining group that’s been on the hunt for base metal producers. Minmetals’ offer amounts to $8 a share.
Anvil shares surged $1.89 or 32.8% to $7.66.
On the economic front, Statistics Canada said this morning that July Gross Domestic Product moved up 0.3%, powered mostly by greater strength in the manufacturing sector. It follows an increase of 0.2% in June GDP.
ON BAYSTREET
The TSX Venture Exchange slipped 15.05 to 1,467.17, while the Nasdaq Canada index subtracted 11.71 points to 416.05
All but three of the 14 Toronto subgroups were down to end the day. Metals and mining were off 2.6%, industrials slid 2%, and energy issues were 1.9% to the bad.
The three gainers were led by gold, up 2%, materials, ahead 0.4%, and telecoms, inching up 0.3%.
ON WALLSTREET
In New York, equities tumbled on the last day of a lousy quarter Friday, as worries about the debt crisis in Europe continue to dominate the market.
The Dow Jones Industrials collapsed 240.60 points, or 2.2%, to 10,913.40
The S&P 500 was negative 28.98 points to 1,131.42, while the Nasdaq dropped 65.36 points to 2,415.40.
Friday marks the end of a volatile quarter as Europe's debt problems intensified and threatened to spill over into the region's banking sector. Investors have also been rattled by signs the U.S. economy is slowing down.
As of Thursday's close, the Dow and Nasdaq are down 10% for the quarter, while the S&P 500 is 12% lower.
Year-to-date, the Dow is down 3.6%, Nasdaq is 6.5% lower and S&P 500 is off 7.7%.
Friday's selling was broad, but shares of major banks were among the hardest hit. Bank of America, JPMorgan, Morgan Stanley and Citigroup were all down between 2% and 4%.
The few gainers were concentrated in defensive sectors such as consumer staples and health care. McDonalds, Wal-Mart, Merck and Procter & Gamble all rose.
Trading in shares of Eastman Kodak was halted following reports that the company could declare bankruptcy. The stock plunged 58% to 70 cents U.S. per share before a circuit breaker was triggered.
Bank of America will begin charging a $5 U.S. monthly fee at the beginning of next year for customers who make debit card purchases.
Looking ahead, traders said the market could find some support next month as the quarterly corporate reporting period gets underway.
But a number of potential pitfalls are on the horizon, including a crucial impasse over additional bailout funds for Greece.
Economically speaking, personal spending increased 0.2% in August, while incomes eased 0.1%, according to U.S. government statistics. The figures matched economists' expectations.
The Chicago PMI, a regional reading on manufacturing activity, climbed to 60.4 in September from 56.5 in August, signifying further expansion in the sector.
The University of Michigan's final reading on consumer sentiment in September was revised up to 59.4 from the preliminary reading of 57.8.
The price on the benchmark 10-year U.S. Treasury gained ground, pushing the yield down to 1.92% from Thursday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil for October delivery surrendered $2.33 to $78.93 U.S. a barrel.
Gold futures for December delivery rose $14.50 to $1,631.90 U.S. an ounce.
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